Goldman Sachs predicts that global equities will continue to rise in the coming year, supported by corporate earnings growth and accommodative monetary policy from the Federal Reserve. However, returns are expected to be more moderate compared to 2025.
In a December 18 report, strategists led by Peter Oppenheimer stated, "We maintain a constructive outlook for equities in 2026 as earnings growth persists, though index-level returns are likely to be lower than in 2025 amid an expanding bull market."
Goldman Sachs economists anticipate sustained economic expansion across regions, alongside further gradual monetary easing by the Fed. According to the report, a regionally market-cap-weighted 12-month equity forecast suggests dollar-denominated price returns of 13% in 2026, rising to 15% when including dividends.
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